Guinness Asian Equity Income X GBP Income

Asia Equities

Rated Fund 2018-19. Equally weights dividend-paying companies

Although it proved susceptible to the slide in Asian stockmarkets during 2018, Guinness Asian Equity Income remains a solid proposition for income seekers.

It aims to provide investors with exposure to high-quality, dividend-paying companies in Asia Pacific, from which it generates a respectable yield of 4.1%. Income is paid half-yearly.

Its lead manager is Guinness Asset Management’s Edmund Harris, who has been managing Asian funds for 25 years. He is assisted by co-manager Mark Hammonds and analyst Sharukh Malik.

The fund is relatively small at £96 million, but it is attracting a growing following, having increased in size from £70 million a year ago. Harris and Hammonds run a high-conviction portfolio of 36 stocks and have no benchmark constraints. The stocks are equally weighted and managed on a disciplined one in, one out basis.

In selecting stocks, they look for three things: quality, value and dividends. They focus on profitable companies that have generated persistently high returns on capital and demonstrated stability and resilience over an eight-year period; companies whose shares under-price the likely persistence of those returns on capital; and firms that can grow their dividends.

Asia has a mix of advanced, high-income economies and newly industrialised countries. Industrialisation brings increased wealth, improved living standards and a vast consumer market that attracts domestic and international brands. High growth and rapid development is often accompanied by volatility and risk, but the managers say strong generation of cash and its distribution as dividends provide a degree of downside protection. Ongoing charges are a very competitive 0.74%.

Narrative and ratings content all as of January 2019.

See all Money Observer rated funds
Name
Guinness Asian Equity Income X GBP Income
Manager
Guinness Asset Management Limited
Type
Open Ended Investment Company
ISIN
IE00BGHQDN69
Sector
Asia Pacific Excluding Japan
Launched
19/12/2013
OCF
1.24 %
Risk Rating
4
3 Year Sharpe
0.69
3 Year Alpha
2.91
Yield
4 %
Benchmark
MSCI AC Pacific Ex Japan NR USD
The investment objective of the Fund is to provide investors with both income and long-term capital appreciation.
Holding %
Ascendas Real Estate Investment Trust 3.04 %
Janus Henderson Group PLC DR 3.03 %
TISCO Financial Group PCL 3.01 %
Luk Fook Holdings (International) Ltd 3.01 %
St Shine Optical Co Ltd 2.99 %
AAC Technologies Holdings Inc 2.95 %
Novatek Microelectronics Corp 2.94 %
Public Bank Bhd 2.92 %
China Lilang Ltd 2.92 %
Tech Mahindra Ltd 2.89 %
Region %
Asia - Developed 41.85 %
Asia - Emerging 35.57 %
United States 14.22 %
Australasia 8.36 %
Sector %
Financial Services 24.70 %
Technology 19.95 %
Consumer Cyclical 14.19 %
Industrials 11.00 %
Healthcare 8.43 %
Real Estate 8.41 %
Consumer Defensive 5.53 %
Name
Guinness Asset Management Limited
Address
SW1H 9AA, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Mark Hammonds
Joined 12/19/2013

Mark joined Guinness Asset Management in 2012 and is co-manager of the Guinness Asian Equity Income Fund. Prior to joining Guinness, Mark worked at Ernst & Young, where he qualified as a Chartered Accountant. Mark graduated from Corpus Christi College, University of Cambridge, in 2007 with a First Class degree in Management Studies. He is a CFA Charterholder.

Edmund Harriss
Joined 12/19/2013

Edmund has managed Asian Funds since 1994 both from London and from Hong Kong. Edmund worked for ten years from 1993 for Guinness Flight, which became Investec after the merger in 1998. After joining the Far East Investment Desk in 1994, he served as a member of the investment team managing the China & Hong Kong Fund (now the Guinness Atkinson China & Hong Kong Fund, for US investors). He moved to Hong Kong and became the Fund’s lead manager in 1998. In addition, Edmund has managed the Guinness Atkinson Asia Focus Fund (for US investors) since 2003, and the Guinness Atkinson Asia Pacific Dividend Fund (for US investors) since its inception in 2006. Edmund graduated from Christ Church, University of Oxford, with a Master’s degree in Management Studies and has a Bachelor’s degree in History from the University of York. He is also an Associate of the Society of Investment Professionals.

Data provided by Morningstar.

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